Tag: company

Beleaguered Chinese tech behemoth Huawei kicked off 2019 with a charm offensive, in a bid to counter damaging headlines that have hit the company in the past few months. In what appeared to be part of a significant public-relations push, the company offered international media a tour last week of its smartphone production factory in Dongguan, an area just north of its headquarters in Shenzhen. And then it took a group of reporters, including from CNBC, to a new campus being built to look like va

Beleaguered Chinese tech behemoth Huawei kicked off 2019 with a charm offensive, in a bid to counter damaging headlines that have hit the company in the past few months.

The company has often been criticized for being too secretive, but has tried to to open its doors more since the start of the year. That comes after the arrest of its CFO on allegations the tech giant committed fraud linked to the skirting of U.S. sanctions, a report that American authorities are probing whether the firm stole trade secrets, and moves from multiple countries to block Huawei’s equipment from sensitive infrastructure projects.

In what appeared to be part of a significant public-relations push, the company offered international media a tour last week of its smartphone production factory in Dongguan, an area just north of its headquarters in Shenzhen. And then it took a group of reporters, including from CNBC, to a new campus being built to look like various cities in Europe.

The biggest sign of Huawei’s new public positioning came later that day, when the company hosted a round table with Ren Zhengfei, the telecommunication equipment maker’s reclusive founder. Ren very rarely speaks to the media, let alone international publications, and is not often seen in public. He spent more than two hours taking questions from outlets including CNBC, addressing some of the allegations thrown at his company.

Tesla is cutting its full-time staff headcount by approximately 7 percent, as it ramps up production of its Model 3 sedans, CEO Elon Musk said Friday. Tesla shares fell almost 8 percent in premarket trade following the news. In an email to employees, Musk notes that the company faces a “very difficult” road ahead in its long-term goal to sell affordable renewable energy products at scale, noting the company is younger than other players in the industry. “Tesla will need to make these cuts while

Tesla is cutting its full-time staff headcount by approximately 7 percent, as it ramps up production of its Model 3 sedans, CEO Elon Musk said Friday.

The announcement come on the back of various cost-cutting measures the company has made of late, as it looks to reduce the price of its products and boost margins.

Tesla shares fell almost 8 percent in premarket trade following the news.

In an email to employees, Musk notes that the company faces a “very difficult” road ahead in its long-term goal to sell affordable renewable energy products at scale, noting the company is younger than other players in the industry.

“Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,” Musk said in the company update.

“Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause,” he added.

Right now the cheapest Model 3 available is the midrange rear-wheel-drive model, which starts at $44,000. A long-range all-wheel-drive model starts at $51,000, and the performance model starts at $63,000. “But then ultimately in the second half you need the mid-range Model 3 to really start to kick in.” With the company clearing Musk’s stated goal of producing 5,000 Model 3s per week, Tesla began focusing on reducing costs and improving efficiency. Read more: Here’s what every major Tesla analys

The electric vehicle maker said Friday it plans to cut about 7 percent of its workforce, which by the last company headcount would equal about 3,100 jobs. The plan is to cut costs and get closer to making the $35,000 Model 3 the company has been promising since it first unveiled the car in 2016.

Right now the cheapest Model 3 available is the midrange rear-wheel-drive model, which starts at $44,000. A long-range all-wheel-drive model starts at $51,000, and the performance model starts at $63,000.

The sales boost from the $7,500 U.S. federal tax credit is running out, and that stands to hurt demand in the United States.

One of the primary reasons for the job cuts is the fact that the cars Tesla makes are still “too expensive for most people,” CEO Elon Musk said in an email to employees announcing the reductions.

For now, Tesla has Europe to lean on, Wedbush analyst Dan Ives told CNBC. The company began allowing European reservation holders to configure their Model 3 orders in early December and plans to begin delivering some versions to the region by next month.

Tesla was not available for comment.

“If you think about the trajectory, the first half of 2019 is really Europe coming onboard,” said Wedbush analyst Dan Ives. That strength in demand will likely offset relative weakness in demand in the U.S., in large part to the waning tax credit and Tesla’s relatively high prices. “But then ultimately in the second half you need the mid-range Model 3 to really start to kick in.”

Toward the end of 2018, Tesla finally seemed to have pulled itself out of the “production hell” it had been submersed in since it began Model 3 production in the summer of 2017.

With the company clearing Musk’s stated goal of producing 5,000 Model 3s per week, Tesla began focusing on reducing costs and improving efficiency. Tesla’s third-quarter results were surprisingly strong, making good on Musk’s expectation that Tesla would be profitable and cash flow positive from the second half of 2018 onward.

There is still debate on Wall Street over whether Tesla will need to raise capital in the next 12-18 months, Ives said, adding that he thinks there is about a 30 to 35 percent chance the company will need to return to markets for cash. Tesla does have about $1.5 billion in debt due in 2019 — one tranche due in March and another in September.

Read more: Here’s what every major Tesla analyst had to say about the cuts.

PayPal said on Friday it will offer $25 million in interest-free credit to its users who work with the U.S. federal government and are impacted by the shutdown. Employees who use PayPal Credit will be able to avail an advance of up to $500 each, without having to pay any interest, and the program will last until the government reopens and employees receive their first paycheck, the company said on its website. The partial shutdown, which hit the four-week mark on Friday, is the longest in U.S. h

PayPal said on Friday it will offer $25 million in interest-free credit to its users who work with the U.S. federal government and are impacted by the shutdown.

Employees who use PayPal Credit will be able to avail an advance of up to $500 each, without having to pay any interest, and the program will last until the government reopens and employees receive their first paycheck, the company said on its website.

The partial shutdown, which hit the four-week mark on Friday, is the longest in U.S. history. The shutdown means 800,000 federal workers nationwide would continue to go unpaid and some government functions would remain impaired.

The shutdown also clouds the outlook for spending, retailers and the economy at large because executives and policymakers weigh not just the direct impact of 800,000 federal workers going without pay, but also how much it can hurt consumer and business confidence.

PayPal said it will take up to three business days to deposit the cash advance into user’s accounts from the date the company verifies their employment.

Shares of Tesla fell 10 percent on Friday after the company announced layoffs, but the electric-car maker is still in the lead position on a technology that is taking over the world, said an early Tesla board member. He is moving faster than anybody else, going global faster than anybody else, and today, Tesla is essentially the iPhone of the electric-car market,” said Westly, a California politician and venture capitalist who was an early investor in the company. While other premium automakers

Shares of Tesla fell 10 percent on Friday after the company announced layoffs, but the electric-car maker is still in the lead position on a technology that is taking over the world, said an early Tesla board member.

Tesla’s Friday announcement that it will cut 7 percent of its workforce is a sign CEO Elon Musk is taking steps to “right-size” the company and prepare it for the future, said former Tesla board member Steve Westly.

” He is moving faster than anybody else, going global faster than anybody else, and today, Tesla is essentially the iPhone of the electric-car market,” said Westly, a California politician and venture capitalist who was an early investor in the company.

While other premium automakers have now jumped into the electric-car market, they were caught “with their shorts down when the tide went out,” and Tesla now has a large lead in that market, Westly said. The company also posted a surprise profit in the third quarter, and Musk has said he expects Tesla to be cash-flow positive and profitable going forward.

“They’ve won the North American premium market race,” he said. “The challenge now is to win the mass market, to go international. I think he is preparing the company to do that. I wouldn’t bet against him.”

However, not everyone agrees with Westly’s assessment.

Tesla’s fourth-quarter update indicated that more than 75 percent of new Model 3 orders came from new customers rather than the existing reservations list. Almost all of those new orders were for mid- and high-price variants of the sedan, said Rajvindra Gill, an analyst for Needham.

Gill estimates that about 90 percent of the 420,000 reservations on that list built up the last couple of years are customers who wanted the still-unreleased standard battery version of the vehicle, which is $35,000.

The issue is that as the $7,500 federal tax credit for electric vehicles continues to wind down, Tesla could start to see customers cancel reservations in the first and second quarter if the company cannot make the planned $35,000 base model quickly enough.

The other issue is that Tesla’s profitable quarter depended in part on selling the more expensive versions of the Model 3, which should make up a smaller piece of the total if Tesla begins producing the cheaper version.

“So I think there’s a lot of risk to the name given the level of valuation we see in this name, given the level of debt the company has, and given the level of competition that will be entering the market this year and next year,” Gill said.

Student loan refinancing companies say they offer borrowers a way to save thousands of dollars on their debt, by allowing them to pay off their loans at a lower interest rate, in less time. Recently, the government found that online lender SoFi was misleading consumers on how much they’ll save if they refinance their student debt with them. The company’s ads boasted average discounts of more than $22,000, but in its calculations the company excluded certain borrowers for whom refinancing resulte

Student loan refinancing companies say they offer borrowers a way to save thousands of dollars on their debt, by allowing them to pay off their loans at a lower interest rate, in less time.

The reality can be much different.

Recently, the government found that online lender SoFi was misleading consumers on how much they’ll save if they refinance their student debt with them.

The company’s ads boasted average discounts of more than $22,000, but in its calculations the company excluded certain borrowers for whom refinancing resulted in a more expensive loan, the government found. In a settlement with the Federal Trade Commission, SoFi agreed to stop its misrepresentations.

SoFi spokeswoman Brielle Villablanca said the company has always been committed to giving its current and prospective members clear and complete information, in a statement to CNBC.

The only brands that saw revenue declines belonged to VF Corp’s denim brands, Lee and Wrangler. VF Corp was hoping to complete the spinoff in March, and it filed the paperwork with the Securities and Exchange Commission to do so in mid-December. It is unclear how a delay in the spinoff could impact VF Corp’s performance in the next fiscal year. VF Corp raised its earnings per share forecast to $3.73, from an earlier estimate of $3.65 per share. VF Corp also reported $3.94 billion in revenue, bea

Shares of VF Corp jumped 14 percent in trading Friday after reporting strong growth in its Vans brand and boosting its outlook for the fiscal year — but the government shutdown could delay the spinoff of its struggling denim brands.

“VF’s third quarter results were fueled by strong growth in our largest brands and balanced growth across the core dimensions of our portfolio,” Steve Rendle, the company’s chairman, president and CEO, said in a statement.

VF Corp’s strongest growth in the quarter that ended Dec. 29. came from Vans, which saw revenue climb 25 percent during the quarter, and The North Face, with revenue increasing by 14 percent.

The only brands that saw revenue declines belonged to VF Corp’s denim brands, Lee and Wrangler. The company said that it now expects revenue for jeans, which also includes its Rock & Republic brand, to drop by 3 percent for the year, widening its previous forecast of a 1 to 2 percent decline.

In August, the company announced plans to spin them off into a separate public company. But CFO Scott Roe told analysts on the quarterly conference call that the government shutdown could delay the spinoff of Kontoor Brands, the name for the new company. VF Corp was hoping to complete the spinoff in March, and it filed the paperwork with the Securities and Exchange Commission to do so in mid-December.

It is unclear how a delay in the spinoff could impact VF Corp’s performance in the next fiscal year.

The company reported that it is increasing its outlook for its current fiscal year, which ends in March. It now expects revenue for the fiscal 2019 to reach at least $13.8 billion, up from a prior estimate of at least $13.7 billion. VF Corp raised its earnings per share forecast to $3.73, from an earlier estimate of $3.65 per share.

The apparel company earned $1.31 per share during its third quarter, excluding expenses and losses related to acquisitions and divestitures. It beat Refinitiv estimates of $1.10 per share by 21 cents.

In all corners of the world, if you’re looking to do an internet search, chances are high that Google is your go-to. The company has cornered the search market, capturing roughly 90% of the global market share. But Google’s domination hasn’t extended everywhere, and Russia is one of the few countries where it lags behind. Here, 55% of the market belongs to the homegrown company Yandex. Like Google, Yandex is so much more than a search engine.

In all corners of the world, if you’re looking to do an internet search, chances are high that Google is your go-to.

The company has cornered the search market, capturing roughly 90% of the global market share. But Google’s domination hasn’t extended everywhere, and Russia is one of the few countries where it lags behind. Here, 55% of the market belongs to the homegrown company Yandex.

Like Google, Yandex is so much more than a search engine. It offers email, cloud, and online payment services, streaming music, news aggregatio, and live traffic maps. Yandex.Taxi merged with Uber last year, and it is testing self-driving cars.

Basically, Yandex sure sounds a lot like Google. So why do the majority of Russia’s 144.5 million citizens actually prefer it?

Tesla has only been producing cars for about a decade and we’re up against massive, entrenched competitors. The net effect is that Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products. However, that was in part the result of preferentially selling higher priced Model 3 variants in North America. Moreover, we need to continue making progress towards lower priced variants of Model 3. Tesla will need to make these cuts while increasing the

In the note, Musk says the firm faces a “very difficult” road ahead in its long-term goal to sell affordable renewable energy products at scale, noting the company is younger than other players in the industry.

Here’s the full text of the company update:

This morning, the following email was sent to all Tesla employees:

As we all experienced first-hand, last year was the most challenging in Tesla’s history. However, thanks to your efforts, 2018 was also the most successful year in Tesla’s history: we delivered almost as many cars as we did in all of 2017 in the last quarter alone and nearly as many cars last year as we did in all the prior years of Tesla’s existence combined! Model 3 also became the best-selling premium vehicle of 2018 in the US. This is truly remarkable and something that few thought possible just a short time ago.

Looking ahead at our mission of accelerating the advent of sustainable transport and energy, which is important for all life on Earth, we face an extremely difficult challenge: making our cars, batteries and solar products cost-competitive with fossil fuels. While we have made great progress, our products are still too expensive for most people. Tesla has only been producing cars for about a decade and we’re up against massive, entrenched competitors. The net effect is that Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products.

In Q3 last year, we were able to make a 4% profit. While small by most standards, I would still consider this our first meaningful profit in the 15 years since we created Tesla. However, that was in part the result of preferentially selling higher priced Model 3 variants in North America. In Q4, preliminary, unaudited results indicate that we again made a GAAP profit, but less than Q3. This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit.

However, starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles. Moreover, we need to continue making progress towards lower priced variants of Model 3. Right now, our most affordable offering is the mid-range (264 mile) Model 3 with premium sound and interior at $44k. The need for a lower priced variants of Model 3 becomes even greater on July 1, when the US tax credit again drops in half, making our car $1,875 more expensive, and again at the end of the year when it goes away entirely.

Sorry for all these numbers, but I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult. This is not new for us – we have always faced significant challenges – but it is the reality we face. There are many companies that can offer a better work-life balance, because they are larger and more mature or in industries that are not so voraciously competitive. Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause.

As a result of the above, we unfortunately have no choice but to reduce full-time employee headcount by approximately 7% (we grew by 30% last year, which is more than we can support) and retain only the most critical temps and contractors. Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way.

To those departing, thank you for everything you have done to advance our mission. I am deeply grateful for your contributions to Tesla. We would not be where we are today without you.

For those remaining, although there are many challenges ahead, I believe we have the most exciting product roadmap of any consumer product company in the world. Full self-driving, Model Y, Semi, Truck and Roadster on the vehicle side and Powerwall/pack and Solar Roof on the energy side are only the start.

A group of Amazon shareholders has filed a letter demanding the company stop selling its facial recognition software to government agencies. The shareholders supporting the letter have over $1.32 billion worth of total assets under management, according to a press statement. This is one of the first organized movements by Amazon shareholders putting pressure on the company’s sale of facial recognition software. An Amazon spokesperson pointed to blog posts the company has written on the subject n

A group of Amazon shareholders has filed a letter demanding the company stop selling its facial recognition software to government agencies.

In a letter filed on Thursday, the investors are pushing Amazon to halt the sale of Rekognition, technology from Amazon Web Services that can identify and track people, citing concerns of potential civil and human rights risks.

The resolution was organized by Open Mic, a nonprofit organization focused on corporate accountability, and was filed by the Sisters of St. Joseph of Brentwood, a member of the Tri-State Coalition for Responsible Investment. The shareholders supporting the letter have over $1.32 billion worth of total assets under management, according to a press statement.

“Sales of Rekognition to government represent considerable risk for the company and investors. That’s why it’s imperative those sales be halted immediately,” Michael Connor, executive director of Open Mic, said in a statement.

This is one of the first organized movements by Amazon shareholders putting pressure on the company’s sale of facial recognition software. The American Civil Liberties Union first raised concerns of racial bias in the Rekognition software after conducting a test last year, and a group of employees also questioned the use of software during Amazon’s staff meeting in November.

An Amazon spokesperson pointed to blog posts the company has written on the subject noting that there are positive uses of facial recognition, including fighting human trafficking and preventing package theft. One of the posts noted that the ACLU’s tests used an 80 percent confidence threshold, which would provide more false positives than the 99 percent threshold that Amazon recommends “for use cases where highly accurate face similarity matches are important.”

AWS CEO Andy Jassy told employees during the November staff meeting that the company plans to continue selling Rekognition to government agencies, saying it feels “really strongly about the value” it provides to law enforcement.

According to the letter, Amazon has sold Rekognition to law enforcement agencies in at least two states, is in the process of pitching the software to U.S. Immigration and Customs Enforcement, and now is testing it with the FBI. It says investors are concerned about Amazon’s software being used “to justify the surveillance, exploitation and detention of individuals seeking to enter the U.S., posing human rights risk.”

The group is hoping Amazon will put the resolution to a vote at this year’s annual shareholder meeting, which typically takes place in May.